Planned Giving

How You Can Help

WHAT IS LEGACY PLANNING?

Legacy planning encompasses a variety of philanthropic strategies designed to help provide for charity while advancing your financial and personal needs. Legacy gifts are becoming increasingly popular among donors because they offer tax benefits and, potentially, income for life.

Sometimes called Planned Giving it is a “win-win” for the donor and Malta House. You, the donor, receive benefits – tax advantages and/or income – that is tailored to your individual circumstances and particular needs while providing future support for Malta House. A variety of planned giving instruments are described below.

BEQUESTS BY WILL OR TRUST

Ideally, each of us should have a will. Dying without a will means the laws of your state will determine to whom and how your assets will be distributed. Each of us should direct how, when and to whom our life’s earnings shall pass upon our death.

An outright monetary bequest in a donor’s will is generally considered the easiest and simplest of legacy gifts. In a will or trust bequest you may designate either a specific dollar amount or a percentage of your estate to Malta House. If you have a taxable estate there are no estate taxes on gifts flowing to charity.

Simply adding the following sample language to your existing will or trust can designate Malta House as beneficiary.

“I give to Malta House, a Connecticut not-for-profit corporation, federal tax ID Number xx-xxxxxx, located in Norwalk, Connecticut the sum of $________ for its general uses and purposes.”

LIFE INCOME GIFTS

With a life income gift Malta House pays the donor an income stream for life or a term of years. While ultimately supporting the program needs and service activities of Malta House, these life income gifts can offer you and your heirs other benefits in addition to income, including:

The ability to convert low or non-income producing assets into a gift with an attractive income stream;Savings on income, capital gains, gift, and/or estate taxes.Such gifts may be funded with appreciated securities, cash or real estate. Examples of life income gifts are:

‍Charitable remainder unitrusts (variable income)

‍Charitable remainder annuity trust (fixed income)

‍Charitable gift annuities (fixed income)

‍Donors considering this category of planned giving should consult with the Malta House philanthropic consultant, an estate planning attorney, investment advisor or other qualified professional.

Donors considering this category of planned giving should consult with the Malta House philanthropic consultant, an estate planning attorney, investment advisor or other qualified professional.

Charitable remainder trusts are individually designed trust agreements. Typically the amount of a funded remainder trust will be $100,000 or more. Trust payouts by law must be 5% or more per year to the beneficiaries named when the trust is established. Beneficiaries may receive a fixed or variable payment. One or more charities may be included as the ultimate beneficiary of the trustand the donor(s) may retain the right to change beneficiaries during their lifetime.

Charitable gift annuities are agreements established with and administered by Malta House. The minimum gift amount is $10,000. Gift annuities provide a fixed guaranteed lifetime payment to one or more beneficiaries.

Malta House follows the rates suggested by the American Council on Gift Annuities. These rates vary by age and number of beneficiaries. Charitable gift annuities may be designed to both increase your income from assets, as well as reduce your current and future income taxes.

An additional benefit of a gift annuity is a large portion of the annual payment is received tax-free.

Contact the Malta House development office for a confidential personal proposal on how a gift annuity will work for your situation.

LIFE INSURANCE POLICIES

Establishing Malta House as beneficiary, or owner and beneficiary of a life insurance policy can produce a substantial charitable benefit at modest out-of-pocket cost to the donor. Life insurance policies are particularly good planned giving instruments for younger donors, or for donors with paid-up cash value policies that are no longer needed for the original protective purposes.

A form designating a change of beneficiary and/or assignment of ownership is available from all insurance providers and is all that is needed to create this planned gift. Payments on insurance policies owned by Malta House can be fully income tax deductible.

RETAINED LIFE ESTATES

A retained life estate is a planned gift made by giving a donor’s home, farm or other real property to Malta House while retaining the right to live in or otherwise use the property for the remainder of one’s life. Upon the donor’s death the title is completely vested immediately in the name of Malta House.

Donor receives an immediate charitable gift deduction for the calculated value of the future gift and the asset is removed from their taxable estate.

GIFT OF “TAX QUALIFIED” RETIREMENT PLAN ASSETS

Donors who name Malta House as sole or partial beneficiary of their retirement plan assets will see such assets removed from their taxable estate and the proceeds immediately transferred to benefit Malta House.

APPRECIATED ASSETS

Stocks, bonds and other securities which are contributed to Malta House are fully deductible at the fair market value of the asset at the time of transfer avoiding any tax on the capital gain.